International banking group Standard Chartered has completed three shipping finance deals for clients in Asia and the Middle East valued in excess of USD 1.6 billion.
In December 2016, Standard Chartered concluded a USD 684.5 million, up to 12-year non-recourse shipping finance facility for BW Gas JuJu LNG Limited, a joint venture partnership between BW Group and Marubeni. Standard Chartered, as facility coordinator, led a syndicate of nine international banks in this transaction, which will refinance existing credit facilities for eight liquefied natural gas (LNG) tankers on long-term charters to Nigeria LNG.
The bank also structured the USD 350 million senior secured Murabaha facility for National Shipping Company of Saudi Arabia (Bahri) in November 2016. This facility will be used by Bahri to finance the construction and delivery of five very large crude carriers (VLCCs), which will be delivered in early 2018. As the exclusive carrier of Saudi Aramco’s crude oil sold on a delivered basis, Bahri will use these VLCCs to transport crude oil to the Americas, South Asia and Far East.
The USD 572 million senior secured term loan facilities to subsidiaries of Reliance Group closed in October 2016 will finance six units of very large ethane gas carriers. These gas carriers transport ethane gas from the US to India.
”These transactions highlight Standard Chartered’s strengths in advising and structuring optimal solutions for clients, its continued commitment to the shipping industry and in particular, further grounding its position in supporting Singapore’s stronghold as a maritime hub in the region amidst challenging conditions in the shipping and oil & gas markets,” the bank said in a statement.